@dhakshinar ,
ALl the top investment groups like kkr,GIC,Silver lake, Mubadala are pouring crores of rupees into RIL , to get retail, and telecom part of RIL. I think the best is yet to come and I see amazing potential for the stock. This is the only company which wants to compete facebooks and Amazons.
I suggest hold this stock and you wont regret.
No matter which government come Mr .Mukesh is an excellent lobbyist ( so don’t worry about the govt influence on the stock, I don’t think any govt will play with such big organization who provides and created lakhs of jobs)
Disc. Invested at 2205 rs.
Thanks & Regards,
Ajay
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Well, it doesn’t seem to compete but rather partner with these two in India. I remember once I said in Avenue Supermart thread - Retail is such a big pie that few big giants would coexist. The ones which coexist profitably will reward shareholders more. ecommerce is so far not profitable in India but Mr Mukesh is a very focussed leader when it comes to execution and profitability. On the other hand, Tatas and Damanis have their own strength. Among all this, the little small Nature’s basket changed its master and ever since growing very well in these trying times with its focus on Speciality foods. I would have been a buyer and Reliance retail and Jio, specifically Jio, would have been one of my largest holdings if they were listed independently.
Jio is an undisputed leader in telecom/data/digital even if the recent foreign investments had not happened. Same cannot be said for RETAIL part of the business - Tatas are leaders in private labels and fashion, growing strongly in grocery & fresh foods and about to come with digital super app While Mr Damani is undefeatable in his own game and I am hopeful that shall continue once the physical turf becomes the major battle ground in couple of years, if not sooner.
Disc: Huge respect for Mr Mukesh, Jio, wanted to invest in Jio but coudnt, Invested in Trent and Dmart with tracking position in Spencer - Hugely biased as a believer in Indian RETAIL story.
Another good essay on the history and present of Reliance.
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Discl - invested
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Discl - invested.
I’ve been seeing frequent Kelvinator AC and Refrigerator advertisements during the IPL. Wondered if Whirlpool has relaunched the brand as they acquired Kelvinator India’s business in 1994. However, found out that its Reliance Retail who has brought it back.
The Kelvinator brand at its peak used to do Rs 1,000 crore-plus business. It has a good pull factor and Reliance can rapidly scale it up
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I think it run a lot in last 6 months from 1000 to straight 2300 that to being such a large weight in major index was also not seen before. So it is just a index management and profit booking, mind you it is still very expensive according to its historical valuation
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Google’s criticism came after India’s flagship payments processor, the National Payments Corp of India (NPCI), on Thursday said that third-party payments apps, from January 1st, will not be allowed to process more than 30% of the total volume of transactions on the state-backed United Payments Interface (UPI) framework. The UPI framework facilitates seamless peer-to-peer money transfers.
The move will likely stymie the growth of payments services offered by Facebook, Alphabet’s Google and Walmart, while boosting the likes of Reliance’s Jio Payments Bank and SoftBank-backed Paytm, which are armed with bank permits.
Same again:
1.Technology sector is very competitive and finding a place in 5 to 10 years is very difficult. survival of the tech company is purely depends on innovation, having lot of money doesn’t matter (Eg Yahoo, Nokia )
2. In Retail sector RIL is having good presence and they may can expand. But maintains margin will be challenging at-least for next 4~5 years.
3. Media and entertainment, now its a technology business only global leaders are going to win.
4.Oil and Gas will continue as big loss making business even after C19 era.
5.JIO Telecom will continue making profit at-least until new technology comes. We have to wait and see how 5G/6G is going change the market.
I think all the hype is created based on JIO success, but if we look at the global telecom market only one or two companies are surviving those who are having nation wide presence and coverage. The point is, success was mainly based on investment rather than innovation.
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Hello all,
I was wondering if Reliance is planning to focus on media and entertainment, what is going to be the relation of the JIO and Network18? as Reliance is planning to merge TV18 + Hathway + Den into Network18 and this merger will bring all Tv channel + Viacom18 + Voot + content distribution through cable and ISP into one roof, how Reliance will use this with JIO? because Jio has Jio Tv and Network18 have Voot. Jio has Jio Fiber and Network 18 have ISP and cable distribution networks. how reliance will brand Jio in this regard? Jio media or just Network 18 or some merged entity?
I’m new to all these discussions, hope someone will help me understand these things.
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UrbanLadder is in the business of operating a digital platform for home furniture and decor products.
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RRVL has a further option of acquiring the balance stake, taking its shareholding to 100 per cent of the equity share capital of UrbanLadder…RRVL proposes to make a further investment of up to Rs 75 crore. The further investment is expected to be completed by December 2023.
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Interesting take on the net debt free status of RIL
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good for academical discussion but accounting creativity and window dressing is always the point of discussion in Reliance.
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Some notes from RIL’s 2019-20 AR ( not exaustive ) -
Reliance Retail stores and area - year wise - on Mar 2018,19,20 -
Stores -
7573 stores
10415 stores
11784 stores
Area-
17.7 Million Sq Ft
22 Million Sq Ft
28.7 Million Sq Ft
Jio Subscribers in Mar 2018,19,20 -
18.66 cr
30.67 cr
38.75 cr
Money raised by RIL in the past few months -
Rs 1,15,694 cr - global investors in Jio platforms
Rs 53,124 cr - rights issue
Total - Rs 1,68,818 cr
If one adds the stake sale to BP in the petro - retail JV, then it would add up to Rs 1,75,000 cr.
Total revenues - Rs 6,59,000 cr vs Rs 6,25,000 cr . Growth in retail, digital services business at 25 pc, 41 pc !!!
EBITDA - 102000 cr vs 92000 cr. PAT at 44,324 cr vs 39,837 cr.
Retail revenues - 1,62,936 cr , up 25 pc. Retail EBITDA at 9,654 cr, up 55 pc
EBITDA margins up 130 bps at 6.6 pc
Jio Platforms - revenues at 68,000 cr vs 48,000 cr
Subscribers at 38.7 cr
EBITDA at 22517 cr vs 15,341 cr
Jio rolling out State of the Art wireline services across homes and enterprises. All this will lay strong foundation for offering platform based digital services. Jio has also consolidated all its Tech Capabilities, investments and connectivity business into a single holding company - Jio Platforms.
Refining and Marketing - Revenues at 3,87,500 cr , down 1 pc.
EBITDA at 24,460 cr , down 6 pc
GRMs stood at $ 8.9
Petrochemicals - Revenues at 1,45,264 cr , down 16 pc. EBITDA at 30,900 cr down 18 pc due lower margins in key products - paraxylene,MEG, PET, polypropylene, polyethylene.
Oil and Gas - revenues at 3,211 cr, down 35 pc. EBITDA at 353 cr vs 1642 cr last year. Domestic production was 38.8 BCF down 34 pc, US Shale production ( RIL Share ) - at 80.4 BCF down 15 pc.
Other income ( interest income ) - 13,956 cr vs 8,386 cr.
Fin cost at 22,027 cr vs 16495 cr
Depreciation - 22,203 cr , up 6pc - due new gasification and digittal services projects.
Consolidated Gross block at 631505 cr
Standalone - 334436 cr, Balance 2,97,067 cr of assets belong to Jio, Retail and Reliance holding USA.
Capex for the yr- 77,444 cr - in expanding digital and retail business, new petchem and refining investments
Reliance Retail - Largest retailer within 14 yrs of launch.
Area wise stores - electronics, fashion, grocery
North - 2022, 566,108
West - 2343, 538, 261
South - 2094, 932, 337
East - 2142, 350,91
Total Physical stores - 11,784 across 7000 + cities and towns. Plus there are digital channels, B2B channels.
Organised retail share of total retail mkt - 11 pc. This percentage is higher in electronics, fashion at 34 pc, 29 pc. Organised retail’s share in grocery at 3.8 pc.
Expected to grow to 17 pc by by Mar 2025. Expected growth rate - 21 pc CAGR over the next 5 yrs
Rel Retail - largest physical electronics retailer
Own electronics brands - LYF, reconnect , Jio Phone
Exclusive electronics brands - BPL, Sharp, Kelvinator
Reliance Trends - largest fashion retail chin in India operating over 1400 stores. Predominantly sells own brands. Own brands include - Netplay, Avaasa, Teamspirit etc. All these brands clock > 500 cr in revenues.
Trends small town - smaller fashion stores measuring about 5000 sq ft, adressing the needs of the whole family. Mainly targeted at tier 3,4 town. Trends small towns now having 240 stores.
Project Eve - Women’s only stores positioned in mid to premium segment.
Reliance jewels - Premium jewelry stores present across 60 + towns offering wide variety of jewellery collections. Total stores - 241.
Rel Multi Brand stores - over 650. Exclusive brand tie ups with - Mothercare, M&S, Armani, Diesel, Brooks Brothers etc.
Rel Retail Grocery - largest grocery retailer with 797 stores across 180 + cities, towns. Has 04 types of stores -
Reliance Fresh
Reliance Smart
Reliance Smart Point ( smaller version of Smart )
Reliance Market ( wholesale cash and carry stores, catering to hotels, kiranas, restraunts, caterers etc )- company operating 52 of these.
Own FMCG brands - **Snac Tac, Good Life, Expelz, Mopz, Graphite, Enzo **among others.
Key strengths- farm to fork value chain integration. Has tie up with tens of thousands of farmers, small vendors for efficient supply chain.
Petro Retail - Has 519 owned Petro retail outlets.
Connectivity retail - master distributor of Jio connectivity services. Comprises of 8100 Jio stores and vast network of retailers across the country for new customer acquisition and recharges.
Sales breakdown -
Consumer Electronics - 44,625 cr, up 14 pc
Fashion and lifestyle - 13,552 cr, up 24 pc
Grocery - 34,601 cr , up 48 pc
Connectivity - 55,943 cr, up 28 pc
Petro retail- 14,215 cr, up 7 pc
New stores in last one year -
Electronics - 605
Fashion and lifestyle - 500
Reliance Jewels - 143 ( almost doubled the store count to 241 )
Grocery - 98 Smart Stores
Acquisition - Hamleys
New JV - American luxury jeweller - TIFFANY , WOMO/ Bullfrog - premium men’s cosmetics brand, Exclusive partnersip with British Footwear and Handbag brand - Kurt Geiger
Future - Jio mart online platform. Also - Commenced whatsaap ordering.
Will try and cover the Digital, Media, Refining and Petchem businesses in my next post.
RIL - is an industry in itself !!!
Disc : invested from 1640 levels.
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Yesterday, I had a talk with the most popular kinara store owner in my locality. I was surprised to find a Snac Tac product in their store, which is usually found at Jiomart or Reliance Smart stores; so asked how they found that item and then the store owner gave some nice inputs… Came to know that they became an exclusive Jio partner last year. They were highly impressed and benefitted from this partnership in the lockdown, as it ensured a steady supply of stocks in the pick lockdown times when they couldn’t get supplies from other distributors. Jio had even given them upto 50% discount in those times.
Jio even offered them to transform their store to a Jiomart store, which they still have not chosen to do.
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thanks for insights. Any reason why they decided not to upgrade to JioStore? Are they skeptical of Reliance dominance in long term compared to benefits?